negative expected rate of return on a security/asset

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• Portfolios

  the expected return on the portfolio and the market?

• Finance Questions

  ) = expected return on the security rf = risk-free rate Beta_s = beta of the security E(rm) = expected return on the market portfolio In this problem we have that: rf = 0.049 Beta_s

• Expected return, standard deviation of stocks/portfolio

  we can calculate expected return on security r A= r f + βA (r m - r f) risk free rate= r f = 5% beta of security= βA= 0.44 return on market portfolio= r m = 19% required return on stock r A = to be determined

• The Credibility of the Jensen's Performance Index

  In addition, the Jensen measure is also based on CAPM (Capital Asset Pricing Model) and it calculates the excess return that a portfolio generates over its expected return.

• Security and Capital Market Line

  : required rate of return on a stock, expected rate of return on a stock, actual or realized rate of return on a stock.

• Capital-asset pricing model

  73045 Capital-asset pricing model : Rate of Return / Security A portfolio that combines the risk-free asset and the market portfolio has an expected return of 22 percent and a standard deviation of 5 percent.

• What is the expected rate of return on the portfolio using CAPM?

  65290 What is the expected rate of return on the portfolio using CAPM? A portfolio that combines the risk-free asset and the market portfolio has an expected return of 25 percent and a standard deviation of 4 percent.

• What expected rate of return would a security earn if it had a 0.6 correlation with the market portfolio and a standard deviation of 3 percent?

  Assume the capital-asset-pricing model holds. What expected rate of return would a security earn if it had a 0.6 correlation with the market portfolio and a standard deviation of 3 percent?

• Expected return and Standard Deviation of a portfolio, CAPM

  The expected return on any security is a function of the risk free rate, beta of the security and the return on the market portfolio.